Steep fall in retail space supply in ’09

The year 2009 witnessed a steep fall in fresh supply of retail space. Real estate consultants Cushman & Wakefield in its annual retail report said that supply of new retail space — malls — fell by 60 per cent from the projections made at the beginning of the year.

The year 2009 witnessed a steep fall in fresh supply of retail space. Real estate consultants Cushman & Wakefield in its annual retail report said that supply of new retail space — malls — fell by 60 per cent from the projections made at the beginning of the year.

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“Of the 44 malls that were proposed at the beginning of this year, just about 18 were delivered by the year-end,” the report said.

Bangalore witnessed largest deferments in mall construction, wherein almost 80 per cent supply was curtailed than the expected supply.

Mumbai witnessed the maximum supply followed by Hyderabad and National Capital Region.

There was a marginal increase in overall mall vacancy rate in 2009 as compared to the last year. The mall vacancy rate stood at 17 per cent in 2009, whereas it was 16.7 per cent in December 2008.

“The slowdown in mall construction need not be viewed as a negative growth indicator for the retail segment of real estate. The current pace is, in fact, expected to help in maintaining a healthier supply to demand equation; especially foroversupplied micro-markets,” said Jaideep Wahi, director, retail agency, Cushman & Wakefield India.